1. Accounting for Your Future DCAA Update Presented for NCMA Cape Canaveral Chapter April 9, 2008 Government Contracting Consulting Services Group Worldwide Consulting K.D. “Ken” Bricker, CPA, DABFA Senior Partner

2. Accounting for Your Future DCAA Audit Results 2002 Results Pricing Proposals (123 B) Incurred Costs (88.4 B) Net Savings (5 B) Budget (390 M) Tax Payer Savings 6.4 to 1 2005 Results 9,673 Pricing Proposals (150.7 B) Incurred Costs (118.7 B) Net Savings (2.7 B) Budget (435 M) Tax Payer Savings 6.2 to 1 WWW.DCAA.MIL

3. Accounting for Your Future Summary of DCAA Audit Results Prior Complete Years and FY 2006 Results Net Savings (in Billions) Effective Auditing Produces Results *Slide accredited to the DCAA

4. Accounting for Your Future Improve e-mail protocol processes Complete 100% of the DCAA controllable incurred cost audits Increase MOCAS transaction based volume of electronic billings on cost vouchers to 85% Conduct a study of lessons learned in contract audit **more later Evaluate current approach to training audit staff and assess training needs / enhance leadership training Evaluate success in passing CPA exam Evaluate workflow into and within FAO Develop improvements for coordination in planning and performing incurred cost audits **more later Assess the effectiveness of defective pricing audit planning and execution ***could be problems, more later Analyze incurred cost and forward pricing audit guidance including audit programs **more later Achieve 10% reduction in costs of COTS software and on-line subscriptions Multiple feasibility studies DCAA Strategic Plan Goals to be Completed in or by Program Year Ended September 30, 2007 (The Year of Self Improvement?)

5. Accounting for Your Future Audit Focus Executive Compensation Financial Capability Internal Controls Professional Services Teams to Determine What is Being Missed

6. Accounting for Your Future Executive Compensation Ceilings: –1997 $250,000 –1998 $340,650 –1999 $342,968 –2000 $353,010 –2001 $374,228 –2002 $387,783 –2003 $406,273 –2004 $432,851 –2005 $473,318 –2006 $546,689 –2007 $597,912

7. Accounting for Your Future Surveys Dietrich DRI ECS ERI EXEC Hays RIA Watson Wyatt

8. Accounting for Your Future JUSTIFYING COMPENSATION Executives Roles (Multiple?) Benefit to company – therefore the government Escalation Full Benefit Package Percentile Income Tax Payments

9. Accounting for Your Future QUESTIONS?